A monopolistically competitive firm will end up selling its output for a price such that

Question

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In a monopolistically competitive market, firms have some degree of market power and therefore can set their own price above the marginal cost. This allows them to earn some profit in the short run, although the long-run profit is limited due to competition from other firms. Thus, the price is typically above the marginal cost in the short run.

A Monopolistically Competitive Firm Will End Up Selling Its Output